VoIP Showdown at the SBC Corral

For a week, I have been meaning to note the bold move made by SBC on the heels of the FCC's  ruling that VoIP traffic is interstate and not subject to state-level regulation.  The Wall Street Journal detailed a new offering from SBC called TipTop which essentially allows SBC to  reassert its rights to recoup termination fees for traffic passing over its network. While some have derided SBC for taking this step, I think it is a shrewd move. If nothing else, it will help accelerate the evolution of business models in the VoIP space, by forcing the freerider issue.  Recent reports indicate there are 400 VoIP providers in North America already! I wonder who will survive the shakeout. My money is with the RBOCs to be among the names in this space. If only for the advantages inherent in owning the pipes over which these calls will need to be termed.  Until the regulatory vacuum which never contemplated VoIP addresses this end-run, I think many of the start-ups will need to play bus dev ball with the incumbents.

Comments

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